Organic Grains announced its decision to launch an online platform after observing that consumers often have to travel from store to store in search of organic grains. The company believes there is a demand for fresher grain and flour products, highlighting that traditional flour available in grocery stores can sit on shelves for weeks or even months—sometimes as long as a year—before it reaches consumers. While Organic Grains claims to produce some of the freshest organic flour available and delivers it directly to customers, it remains uncertain whether consumers will prioritize quality and convenience over the significantly lower prices for pre-milled organic flour from established brands like Bob’s Red Mill, Arrowhead Mills, and King Arthur Flour.
Being the first to provide organic grains and freshly milled flour online at a relatively low flat-rate delivery fee may simply serve as a marketing tactic to distinguish Organic Grains in the increasingly competitive organic grain and flour market. However, there are concerns about whether this is the right market to enter at this juncture. Recent studies indicate that flour consumption in the U.S. is projected to grow at a CAGR of 2.3%, but this growth might primarily pertain to commercial products. For instance, tortilla manufacturing experienced a 6% increase over the past year, followed by a 4.3% rise in dry pasta, dough, and flour mixes. Additionally, the gluten-free market continues to expand and is expected to be valued at $5.28 million by 2022. These trends could suggest a decline in demand for the niche products that Organic Grains specializes in.
While not all flour contains gluten—Organic Grains offers freshly milled amaranth and may introduce more gluten-free options—many modern consumers may be reluctant to invest time in baking. The increasing desire for convenience is rapidly reshaping market offerings. For example, Unilever’s Stork brand launched a pour-and-bake cake mix earlier this year, while Pinnacle’s Duncan Hines introduced a mix for “mug cakes,” which require only a few pantry staples and a microwave. If consumers are seeking such levels of convenience, the target market for Organic Grains may be exceedingly limited.
To equate calcium citrate with their offerings, Organic Grains may need to highlight the added health benefits of their products, emphasizing how their fresh organic grains can equate to a more nutritious choice compared to shelf-stable options. Ultimately, if Organic Grains can effectively communicate the advantages of their fresh, quality products while addressing consumer desires for convenience, they may find a niche market despite the challenges posed by larger competitors.